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ACC 321 Exam Spring 2013

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Question;ACC 321 Spring 2013Sample Exam 1100 pointsI. Multiple Choice (2 points each, 40 points total)1. Which of the following events isnotpart of the Expenditure cycle?A)Cashier processes a customer's payment for merchandise inventoryB)Purchasing department orders merchandise inventory from a vendorC)Manufacturing department requisitions merchandise inventory from purchasing departmentD)Warehouse receives merchandise inventory from a vendor E)Shipping department returns unwanted merchandise to a vendor2. What is one of thebest ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?A) requiring all suppliers to have the carrier verify quantities and item numbers before shipmentB) requiring all suppliers to include RFID tags on their itemsC) requiring all suppliers to use EDI to expedite the receiving department functionD) requiring all delivery trucks to have satellite data terminals to expedite the receiving department functionE) requiring all receiving areas to be locked and provide employees with badges to restrict access to only those who have a need to access the storage area3. Cardinalities provide information about how an entity type participates in a relationship. Which of the following statements is true?A)The minimum participation represents whether the entity type can participate many times in the relationship.B)The maximum participation represents whether the entity type must participate in the relationship.C)A ?1? always represents some restriction, whether it is for a minimum of maximum participation.D)A maximum participation of ?0? means that the entity type is not required to participate in the relationship.E)None of the above4. Who of the following wouldnot be involved in the revenue cycle?A) Accounts payable clerkB) CustomerC) CashierD) Credit managerE) Salesperson5. Which of the following statements about the revenue cycle is false?A)The economic decrement event is cash receiptB)The commitment event is the sales orderC)The reversal event is the sales returnD)The instigation event is the sales callE)All of the above are true.6. Common source documents for the revenue cycle include all of the followingexceptA) sales order.B) receiving report.C) delivery ticket.D) credit memo.E) picking slip7. Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known asA) turnaround documents.B) source documents.C) source data automation.D) transaction documents.E) electronic data interchange8. How does the financing cycle relate to other cycles:A)It gets cash from the revenue cycle and provides cash to the expenditure and HR/payroll cycleB)It provides cash to the expenditure, revenue, and HR/payroll cycleC)It gets cash from the expenditure cycle and provides cash to the revenue and HR/payroll cyclesD)It gets cash from the expenditure cycle and provides cash to the revenue, HR/payroll, and production cyclesE)It gets cash from the expenditure cycle and it sends cash to the organization for mergers/acquisitions and other strategic outlays of money9. Which of the following isnot a transaction cycle?A) revenueB) expenditureC) human resourcesD) general ledger and reportingE) production10. The Sarbanes-Oxley Act (SOX) resulted in regulations on publicly traded firms. SOX specified that IT controls needed to be documented and tested. Which of the following statements is false regarding SOX and IT controls?A)Management must document and test the relevant general IT controls as they relate to financial reportingB)Management must document and test the appropriate application-level IT controls designed to ensure financial information generated by the information system can be relied uponC)Management must include new IT systems and upgrades in its assessment on internal control over financial reportingD)Management must test all general IT controls, including both those that pertain to financial reporting and also general business operationsE)All of the above are correct11. It has been discovered that credit sales have been made to customers with a poor credit rating. If this continues, the company will face increasing uncollectible receivables and losses due to bad debts. Separation of duties between ________ and ________ should help resolve the problem.A) shipping, billing dutiesB) credit approval, marketingC) billing, credit approvalD) marketing, accounts receivable12. Consider the following revenue cycle scenario: The company has been exposed to customer dissatisfaction and the suggested control procedure to be implemented is to install and use bar-code scanners. What is the threat?A) The company may be shipping the wrong merchandise.B) The company may be shipping the wrong quantities of merchandise.C) The company may be shipping orders to the wrong address.D) The company shipped product that had defects.E) All of the above threats may apply to this scenario.13. Which of the following duties could be performed by the same individual and not violate segregation of duty controls?A) handling cash and posting to customer accountsB) issuing credit memos and maintaining customer accountsC) handling cash and authorizing credit memosD) handling cash receipts and mailing vendor paymentsE) handling inventory and maintaining receiving records14. The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers. The family and friends usually give the clerk cash as a"thank you". Which procedure willnot prevent or detect this fraud?A) Send monthly statements to all customers with balances owed.B) Reconcile sales invoices in the billing department to the total debits to accounts receivable subsidiary ledgers.C) Sequentially prenumber all invoices and prepare a sequence check at the end of each day.D) Reconcile the accounts receivable control account to the accounts receivable subsidiary ledger.E) Have different employees generate the invoice and record the receivable. 15. When new employees are hired by Folding Squid Technologies, they are assigned user names and appropriate permissions are entered into the information system's access control matrix. This is an example of a(an)A) authentication control.B) biometric device.C) remote access control.D) authorization control.E) corrective control16. Which document should always be included with a merchandise shipment to a customer?A) Packing slipB) Picking ticket C) Remittance adviceD) Sales invoiceE) Purchase order17. Which of the following documents would be found in the expenditure cycle?A) delivery ticketB) time cardC) credit memoD) purchase orderE) invoice18. Which of the following would be theleast effective control to minimize the loss of inventory?A) Secure the storage location of inventory.B) Release inventory only with proper documentation.C) Periodically back up all perpetual inventory records.D) Reconcile the physical counts with and perpetual records.E) Place video cameras in the warehouse location where inventory is stored. 19. The relationship between the accounting information systems and organization strategy is:A)The processes supported by the accounting information system will be unrelated to the organization?s strategy?strategy occurs at a much higher level in the organizationB)The processes supported by the accounting information system will drive the organization?s strategyC)The processes supported by the accounting information system will enable the organization?s strategyD)The processes supported by the accounting information system will change the organization?s strategyE)The processes supported by the accounting information system are the organization?s strategy20. How does the HR/payroll cycle relate to other cycles:A)It gets cash from the financing cycle and provides labor to the production cycleB)It gets labor from the expenditure cycle and provides labor to the production cycleC)It provides labor to the production cycleD)It provides labor the production, the revenue, and the expenditure cyclesE)It gets cash from the financing cycle, labor from the expenditure cycle and provides labor to the production, revenue and expenditure cyclesII. Model the cardinalities for the following examples. (20 points).The Sale-Inventory relationship for a custom homebuilder.A company?s inventory purchases (of raw material inventory) are to be paid for with a single payment.The relationship between the Receive Inventory and Disburse Cash events for a company which receives monthly bills from its suppliers for all purchases made the previous month, some suppliers require payment of the entire bill, in full, within 30 days or they will not accept any subsequent orders, but other suppliers accept installment payments.III. Draw an REA data model complete with cardinalities. Clearly list the primary keys, foreign keys. Also list the attributes. State any assumptions you had to make. (40 points)Sparky?s Amusement Park is an entertainment park run by recent college graduates. It caters to young people and others who are young at heart. The owners are very interested in applying what they have learned in their information systems and marketing classes to operate a park better than any other in the area. To accomplish these goals, guests of the park are given a personal ?membership card? as they enter. This card will be used to identify each guest. Assume that a new card is issued each time a guest comes to the park. As a result, the system does not have to track one person over a period of time. As at other parks, guests pay a flat fee for the day and then are able to ride all of the attractions (such as a double-looping roller coaster and the merry-go-round) for no extra charge. The owners, however, want to track the rides each guest takes and the attractions the guests use. They plan to have guests swipe their membershipcard through a computerized card reader, which automatically enters information into the computer system. This should allow the owners to gather data about the following:?Number of people who use each piece of equipment. (How many people rode the Ferris wheel today?)?Number of times each piece of equipment is operated daily.?Times of day the attraction is busy or slow. (When was the carousel the busiest?)?Number of attractions each guest uses. (How many different pieces of equipment did customer 1122 ride?)?Number of rides each guest enjoys. (How many different rides did customer 1122 enjoy? Did each guest go on any rides more than once?)

 

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